(btw, Larry and Sergey bought Android without telling Eric, to give you an idea of what could have been)
He said it in passing, while talking about the Google mobile strategy (the summary of what he said was "we sort of fell into this business, nobody really understands it just yet (mobile ads) or how big the opportunity will be")
I agree Android was setting itself up for an acquisition, same as what happen with Danger. They were probably aiming for a carrier or large non-Apple manufacturer.
I'm sorry, but the most likely theory in this case seems to me to be that you're misremembering things, than somehow a whole room of other people were simultaneously rendered incapable of recording or publishing a very interesting quote from Eric.
http://www.businessinsider.com/sometimes-larry-and-sergey-do...
John Gruber linked back to it this morning.